Simulation optimization: methods and applications

Simulation optimization can be defined as the process of finding the best input variable values from among all possibilities without explicitly evaluating each possibility. The objective of simulation optimization is to minimize the resources spent while maximizing the information obtained in a simulation experiment. The purpose of this paper is to review the area of simulation optimization. A critical review of the methods employed and applications developed in this relatively new area are presented and notable successes are highlighted. Simulation optimization software tools are discussed. The intended audience is simulation practitioners and theoreticians as well as beginners in the field of simulation.

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